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A trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted. He plans to sell the remaining grain so that he makes 40% overall profit. At what price (in Rs. per kg) should he sell the grain?Options47.5504852.5

Question

A trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted. He plans to sell the remaining grain so that he makes 40% overall profit. At what price (in Rs. per kg) should he sell the grain?Options47.5504852.5

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Solution

The trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted, so he is left with 80% of the grain.

Step 1: Calculate the cost price of the usable grain The cost price of the usable grain is Rs.30 per kg divided by 80% (or 0.8), which equals Rs.37.5 per kg.

Step 2: Calculate the selling price to make a 40% profit The trader wants to make a 40% profit on the cost price of Rs.37.5 per kg. So, the selling price should be Rs.37.5 per kg plus 40% of Rs.37.5 per kg.

40% of Rs.37.5 per kg is Rs.15 per kg.

So, the selling price should be Rs.37.5 per kg + Rs.15 per kg = Rs.52.5 per kg.

Therefore, the trader should sell the grain at Rs.52.5 per kg to make a 40% overall profit.

This problem has been solved

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